1% GST on e-commerce put off

Just five days ahead of the new Goods and Services Tax (GST) roll-out, the Government on Monday deferred 1% tax collection at source (TCS) by the e-commerce companies and tax deducted at source (TDS) by the central or state governments or their agencies and the local authorities. These two taxes will be brought into force from a date which will be communicated later, a finance ministry press note said, stating that their implementation from July 1 when the GST is rolled out is postponed to provide more time to persons liable to deduct tax at source/ E-Commerce Companies and their suppliers to prepare for the historic tax reform. The decision was to ensure smooth roll-out of GST, taking into account the feedback received from the trade and industry, the note said. It also made it clear that "persons supplying goods and services through electronic commerce operators need not obtain registration immediately unless they are so liable under Section 22 or 24 of the CGST/SGST Act." It said persons liable to deduct or collect tax at source will be required to take registration, but their liability to deduct or collect tax will arise from the date the respective sections 51 and 52 are brought into force. While Section 52 of the Central and State GST Acts deals with e-commerce operators, Section 51 is for deduction by a department or establishment of the central or state government or local authority or govt agencies or any category of persons so notified on the recommendation of the GST council.